The climate impacts of EU s multifunctional forests. Jaana Bäck Sep 28, 2017

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1 The climate impacts of EU s multifunctional forests Jaana Bäck Sep 28,

2 How the EASAC Forest multifunctionality report was done Hosting for the report: Finnish Academy of Science and Letters 19 High level experts from 14 countries: FI, SU, SE, NL, CZ, AU, BE, FR, GE, GR, IT, UK, PO, HU Multidisciplinary approach, including energy, economic, forestry, conservation, ecology and climate change experts Independent, scientific understanding on European forests - accounting for multi-functionality Jaana Bäck Sep 28,

3 What is in scientific debate on forests? 1) CLIMATE CHANGE 2) BIODIVERSITY Bellassen & Luyssaert Nature 2014 Fares et al., Nature Jaana Bäck Sep 28, 2017

4 coordinates sectorial policies for forest-related issues EU Forest strategy 2013 an agreed holistic strategic vision on forest issues, and for ensuring that linked EU policies are fully taken into account in national forest policies strengthens the capacity of forests and the forest-based sector AIM: path towards a green economy, value the benefits that forests can sustainably deliver, while ensuring their protection MAP:. forestry is key in the transition towards a low-carbon and climate friendly economy Sustainable forest management contributes to major societal objectives Supporting our rural and urban communities Fostering the competitiveness and sustainability of the EU s Forest-based Industries, bio-energy and the wider green economy Forests in a changing climate Protecting forests and enhancing ecosystem services Improving the knowledge base What forests do we have and how are they changing? New and innovative forestry and added-value products Fostering coordination and communication Working together to coherently manage and better understand our forests Forests from a global perspective Jaana Bäck Sep 28,

5 Conclusion 1 Forests in EU Diversity in history, ecological, climatic and edaphic factors, stocks and growth, management, ownership Forestry is important branch in many economies Many ecosystem services from forests are important for local people as well EU has only minor influence on the forest policy in Europe International treaties and commitments bind the Union but national legislations overrule the policies regionally possibilities for conflicts and strong incentives for lobbying EU should develop ways to account for the national differences but simultaneously set clear incentives for better and transparent policies following the international obligations, esp. Paris Agreement and Convention on Biological Diversity Jaana Bäck Sep 28,

6 Conclusion 2 - Climate change Forests produce many climate benefits: sequester carbon, contribute to cloud formation, products for substituting fossil fuels and other carbon intensive materials Forest carbon sink and storage are dynamic and depend on management The report concludes: The planned intensification of harvests for e.g. bioenergy will in short and medium term yield in loss of carbon sink and release of carbon from storage: no mitigation but possible acceleration of climate change Forests already suffer from climate change; fires, droughts, storms, pathogens: current management tools are not planned to increase forest resilience nor their climate impact Jaana Bäck Sep 28,

7 1.1 Pg C y -1 Carbon sources and sinks 4.0 Pg C y -1 Atmosphere 44% Pg C y Pg C y -1 Terrestrial ecosystems 30% 2.3 Pg C y -1 Oceans 26% Pg = g = 10 9 tn Jaana Bäck Sep 28, Sources: CDIAC NOAA-ESRL; Houghton et al, 2012; Giglio et al 2013; Le Quéré et al 2015; Global Carbon Budget 2015

8 Forests and carbon cycle Forests are important carbon sinks Sink size depends on the amount of standing biomass Sink operates very fast and rotates ca. 100 bill. tn C annually (globally) Forests are also important carbon storages Storage size depends on the rotation period length Globally C storage in land ecosystems is much larger than the annual flux, in particular soils are large storages in mid- and northern latitudes Figure: Forest Europe Average half-life of carbon is less than 5 years when all uses of forest products are accounted, ie., in 5 yrs 50% of the carbon in harvested trees is back in the atmosphere Jaana Bäck Sep 28,2017 8

9 Conclusion 3 - Biodiversity Forest structural elements, old growth forests, and forest continuity are crucial for biodiversity Forest management is central in maintaining - or loosing - biodiversity values of production forests: genetic, species and habitat diversity Good biodiversity implies often good productivity and resilience The report concludes: Meeting biodiversity conservation targets is more important than ever, but seriously compromised by the planned intensification of use of wood Global and EU level biodiversity conservation is hampered by exclusive Member State level land use planning Land sharing & land sparing: protecting the old-growth forests and maintaining deadwood in production forests are key tools for preserving biodiversity Jaana Bäck Sep 28,

10 Conclusion 4: Forests and climate policy need for a holistic approach 1. How to find a socially and economically optimal balance between forest utilisation and storage of carbon? 2. Forests and climate change in the EU -policy How to create correct forest owner-level incentives in market economies? What kind of country-level incentives does EU create? 3. How should forest management be modified to fulfil the multifunctionality targets? Jaana Bäck Sep 28,

11 A holistic view to forestry and climate policy Q1: What is the socially optimal balance between wood utilization and storing carbon into forests? Research shows that including carbon storage always changes the socially optimal forest management (never neutral ) For Nordic countries, studies suggest that storing carbon into forests is among the cheapest methods to decrease net carbon emissions Given carbon price of /tn, it would be optimal to store huge amounts of carbon in (at least) boreal forests (no analyses from other parts of EU exist) In production forests accounting for carbon storage tends to increase rather than decrease long run timber supply Jaana Bäck Sep 28,

12 A holistic view to forestry and climate policy Q2: How to create correct incentives? In economical terms, carbon storage is a positive externality and carbon emissions from harvested wood are negative externalities Externalities should be controlled via market interventions => Subsidizing carbon storage and taxing (all) carbon emissions yields economically correct incentives, leading to Cleaner earns, polluter pays principle Subsidizing carbon storage is applied in New Zealand and Canada but EU lags behind Unclear whether the immediate oxidation principle of IPCC (and applied in EU) represents a fruitful basis to create correct incentives in forestry and for utilizing wood Jaana Bäck Sep 28,

13 Forests and climate change in EU -policy EU bioeconomy policy: a strong boost to use forests in energy production No guarantee of any balance between using forest for energy production and increasing/maintaining the storage of carbon and forest multi-functionality Some other critical factors of the EU -policy setup 1. How are the country specific forest reference levels defined? if reference levels are loose with respect to BAU, countries have incentives to transfer emissions from other sectors (like non-ets) to forestry without any real decrease in net carbon emissions countries should not benefit from high BAU carbon storage only additionality matters 2. What are the consequences if countries do not meet their forest reference levels? The worst case: countries use public subsidies for transferring emissions from non-ets sector to LULUCF without any real decrease in net emissions Jaana Bäck Sep 28,

14 Economically profitable wood production can be adapted to climate change risks and multi-functionality Many studies show that mixed species heterogeneous forests provide higher levels of ecosystem services and multi-functionality Earlier it was thought that continuous cover forestry (CCF) is not economically viable in boreal forests (although has been applied in C-Europe) New research suggests that it is viable in low and middle fertile sites Good option also in drained peatlands where the water balance is critical Carbon storage increases the social profitability of mixed species CCF Climate change is predicted to increase insect, pathogen, storm, fire, etc risks => increasing forest management alternatives is a sensible risk-sharing policy Need for reorientation within the forestry profession; tools exist but they need to be taken in better use Jaana Bäck Sep 28,

15 Forest management options in changing climate Forestry based on ClearCuts even-aged forestry planted, typically single species high volume of timber typical in Scandinavia (98%) illegal in some Central European countries carbon storage dynamics depends on rotation period length lower biodiversity status period1 period2... period1 period2... rotation period 1 rotation period 2 Continuous Cover Forestry heterogeneous uneven- aged stands thinning every years, natural regeneration single or mixed species stands applied in temperate forests, was earlier illegal in Scandinavia suitable for certain forest types constant forest cover, improves resilience and biodiversity and retains carbon storage in soil Jaana Bäck Sep 28,

16 THANK YOU! Jaana Bäck Sep 28,

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